Do i need a new cpa?

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beachmom
Posts: 59
Joined: Thu Feb 14, 2013 4:38 am

Do i need a new cpa?

Post by beachmom »

I am getting fed up with our Cpa. We hired him based on personal rec. from a relative. I had always prepared my own taxes until I inherited an estate that included a farm with aprraised value over 1 million. Last year I sold trees. Received a lump sum in the mid six figure range. I emailed him asking how to handle? Should we file quarterly etc? I stated we planned to Max 401k for the year and donate x amt to charity. He asked me to come in and talk. I made an appt. and went in with figures.
Well he spent all this time telling me to keep money in taxable. That RMD would be a problem. He talked a LOT about his physician clients and their issues. We aren't in health care and have small salaries. Our retirement accounts are less than 150k. We have more in taxable. In the end he said we proabably didn't need to do quarterly estimates. I have a large stepped up cost basis on the trees. He said he would "run the numbers and get back to me"
After that he periodically emailed me with I am busy with corporate taxes now get back to later. He never did. I let it go after a while. I figured since he didn't charge me for the visit it was a wash but I was very disappointed.
My final peeve is that I asked the office manager for additional forms to record 1099 div income yesterday and she promised to fax them but hasn't. The fax was her choice. I don't know why email wasn't an option.
My H who doesn't keep the records likes this guy and doesn't want to switch. I find him patronizing and feel he doesn't try to understand our situation. It is unusual but that is why we pay him. He is one if the named partners in the firm. It would be hard to move to someone else since so much seems to go by prior year.
Last year I found errors in the return and he at first did not want to fix them. Told me it wouldn't make a difference. Well I insisted and it did make a difference.
I do need a CPA. We have very uneven income farm expenses two rental house lots of unusual stuff. After my mom died her accountant went back and ammended her previous 2 returns to average her income. Most complicated return I have ever seen.
I am nervous going in with a 50000 net capital gain and we haven't filed quarterly taxes.





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Last edited by beachmom on Fri Feb 21, 2014 9:28 pm, edited 1 time in total.
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runner9
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Location: Ohio

Re: Do i need a new cpa?

Post by runner9 »

After reading all your issues, why would you even consider sticking with this person? You're not happy, they've made mistakes, they haven't been responsive to your needs, what other evidence do you need to switch?
bondsr4me
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Re: Do i need a new cpa?

Post by bondsr4me »

There are some tax forms that photocopies/emails are not acceptable and the Form 1099 is one of them.
These forms either have to be printed with a laser that can be scanned or an actual tax form.
You need to go to your local IRS office and get a few of them...they are free.
And while you are there, get a FORM 1096 which is due by 2/28.

Hope this helps.

Don
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House Blend
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Re: Do i need a new cpa?

Post by House Blend »

You've listed four or five good reasons to move on. Any single one of them would be a deal-breaker for me. Why do you even need to ask?
beachmom wrote:I am nervous young in with a 50000 net capital gain and we haven't filed quarterly taxes.
There are various safe-harbor provisions. Even if you have significantly underpaid this year, there is no penalty if you've already paid an amount greater than your total tax bill *last year*. Or 110% if over $150K AGI.

And I recall that it is even more relaxed for those with Farm/Fishing income but I don't know the details. Are you filing Schedule F?

And if you do owe a penalty, I would add that to your CPAs fees when reckoning how much you are paying for his "expertise".
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JonnyDVM
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Re: Do i need a new cpa?

Post by JonnyDVM »

Not a single person here is going to tell you to keep this guy. You're paying him to do a job and it sounds like not only is he not doing it well but he's being a jerk in the process. There are plenty of CPA's around that will make your life easier rather than more frustrating. Depending on where you are located there may even be bogleheads that could refer you to someone significantly better.
I’d trade it all for a little more | -C Montgomery Burns
HouseStark
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Joined: Mon Oct 15, 2012 2:31 pm
Location: Minneapolis, MN

Re: Do i need a new cpa?

Post by HouseStark »

Depending upon your area, many CPAs may not have experience with farming or timber sales. Those are not generally encountered situations in many practices. If you want some more satisfaction then finding a practitioner who deals with those situations would be recommended.

You also have to keep in mind that the current time is probably the absolute worst time of the year to engage a new tax practitioner. One option is to tell your CPA you will want to file an extension and just want to make sure you are covered at the minimum for the safe harbors to avoid penalties on underpayment of estimated taxes, but interest would accrue on unpaid balances due, or at best, to pay your projected total liability by April 15th. Then you could seek out a new CPA after April 15th when more time is available for one to give you better service.
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abuss368
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Re: Do i need a new cpa?

Post by abuss368 »

Based on your message it appears that you are not getting the service you need. I would talk to your spouse and express your frustrations. You appear to have a good cause to consider hiring a new qualified CPA that provides more personal service.
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frugaltype
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Re: Do i need a new cpa?

Post by frugaltype »

It occurs to me that your spouse may like him because the CPA treats men differently from the way he treats women, and your DH doesn't see the side of him that you do.

I would certainly get a new CPA, regardless. Especially since it sounds like you're the one handling the finances, but even if you weren't.

How about going with your late Mom's CPA?
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Hayden
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Re: Do i need a new cpa?

Post by Hayden »

I've been wrestling with this same question myself. In my case, I don't think there's much point in moving from one general purpose CPA to another general purpose CPA. When I make the move, it will be to a CPA that specializes in my situation. That same reasoning may apply to you as well.
travelnut11
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Re: Do i need a new cpa?

Post by travelnut11 »

I also hate my CPA but am sort of at a loss as to how to find a good one. She was recommended to me 10 years ago but if I didn't have rental properties I would just do it myself. I wonder how difficult it is to switch to a new CPA if she has all of my records on file including the various depreciation schedules, etc.? Maybe it's not that big of a deal and I just need to do it. Hopefully a CPA or two will chime in on this thread and give us all some advice as to what to do when you feel stuck with your current CPA.
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tj
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Re: Do i need a new cpa?

Post by tj »

travelnut11 wrote:I also hate my CPA but am sort of at a loss as to how to find a good one. She was recommended to me 10 years ago but if I didn't have rental properties I would just do it myself. I wonder how difficult it is to switch to a new CPA if she has all of my records on file including the various depreciation schedules, etc.? Maybe it's not that big of a deal and I just need to do it. Hopefully a CPA or two will chime in on this thread and give us all some advice as to what to do when you feel stuck with your current CPA.
The depreciation information should also be attached to your return.
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